As a business owner in Maryland, it's crucial to stay ahead of changes in labor laws, especially when they affect how you manage your workforce. Two new laws, passed during the 2024 General Assembly session, will take effect on October 1, 2024, that you need to be aware of: the Pay Transparency Law and the Pay Stub and Pay Statement Law. These laws are designed to enhance transparency in compensation and ensure employees receive detailed information about their pay and benefits.

The Pay Transparency Law: What It Means for Job Postings

Under the new Pay Transparency Law, businesses in Maryland are required to disclose specific information in job postings, both internal and external. This is a significant change from the current law, which only requires wage range disclosure upon request.

Here's what you need to include:

• Wage Range: The minimum and maximum salary or hourly rate that you, in good faith, believe to be accurate at the time of posting.
• General Description of Benefits: This includes health insurance, retirement plans, paid time off, and any other compensation like employer-provided meals or housing.
• Other Forms of Compensation: Any additional earnings or monetary benefits, including overtime pay, commissions, bonuses, or stock options.

These requirements apply to all forms of job postings, including social media, printed ads, email blasts, and job boards. If you're recruiting for positions with varying levels of seniority or across different locations, you must specify separate wage ranges for each role.

Key Tip: If you're uncertain about how to format your job postings to comply with the law, the Maryland Department of Labor (MDOL) offers a template to help you get started.

The Pay Stub and Pay Statement Law: Enhanced Disclosure for Employees

In addition to making job postings more transparent, the Pay Stub and Pay Statement Law requires employers to provide more detailed information to employees about their compensation.

Here's what your pay stubs must now include:

• Employer's name, address, and phone number
• Pay date and pay period dates
• Number of hours worked (for non-exempt employees)
• Rates of pay, including any additional earnings like bonuses or commissions
• Deductions and their descriptions
• Gross and net pay

These statements can be provided in written form or through an online portal. Importantly, this law applies to every payday, and the employee cannot waive this right. Any reduction in pay must be communicated at least one pay period in advance, though pay increases do not require prior notice.

For Restaurants: If you employ tipped workers, be aware that this law introduces extra requirements that go beyond Maryland's existing tip credit wage statement rules.

What Happens If You Don't Comply?

It's essential to update your systems by the October 1 deadline. Failure to comply with these laws can lead to penalties from the Commissioner of Labor, such as fines of up to $500 per employee for violations related to wage transparency.

While individual employees cannot sue for violations of these laws, non-compliance may lead to investigations and fines that can disrupt your business.

Practical Steps to Prepare for October 1, 2024

• Review your onboarding procedures to ensure you're providing new hires with all required notices regarding pay and benefits.
• Update your payroll systems to include the additional information required on pay statements.
• Train your HR and payroll staff so they understand the new legal requirements and how to ensure compliance.
• Review and revise your job postings to include wage ranges, benefits descriptions, and other compensation details in line with the Wage Range Transparency Law.

Taking these steps now will help you avoid fines and ensure you are fully compliant with Maryland's new labor laws.

Take action now: contact us for expert guidance

If you have questions or need help implementing these changes, don't hesitate to reach out!

We're here to assist you in making this transition as smooth as possible.

Schedule a free consultation today.